Uber Technologies Inc. is said to be in advanced talks to acquire Middle Eastern ride-hailing startup Careem Networks FZ, according to a report published Thursday.

Bloomberg reported today that the two companies may announce a cash-and-shares transaction that values Careem at about $3 billion in the coming weeks. But it notes that negotiations “are ongoing and no final agreements have been reached.”

Reports that Uber was attempted to acquire Careem, the largest ride-hailing provider in the Middle East, first circulated in July. Founded in 2012, Careem operates in 120 cities across 13 countries in the Middle East, North Africa and South Asia.

As of September 2017, Careem was said to have a valuation of $1.2 billion but has since raised an additional $200 million in venture capital while attempting to raise $500 million in total. As CNBC noted in October, it’s “not immediately clear what Careem’s valuation would be after securing the latest funding.”

Careem’s market share is difficult to pin down. Although it has not become as dominant as Didi Chuxing Technology Co. or Grab Taxi Pte. Ltd. did in China and Southeast Asia, both territories Uber ended up exiting, there is some suggestion that Careem is beating Uber in the Middle East. Without giving comparative numbers, Fast Company reported in October that Careem was winning out over Uber in the region.

Whether it’s beating Uber one-on-one is another matter, however. Careem, with a market presence in 120 cities, claims 1 million drivers and about 25 million customers. It clearly dominates Uber in terms of market presence since Uber operates in only about 20 cities in the region.

Should the acquisition happen, it will be Uber’s largest-ever acquisition, at the same time consolidating their market share in the Middle East as it staggers toward a long-awaited initial public offering.

Uber hired Wall Street veteran Nelson Chai as chief financial officer in September, a move seen by many is prepping itself for an IPO, with the company seemingly on track to go public in the coming months. Rival Lyft Inc. is likely to beat Uber to the punch, possibly going public as soon as the end of March.

Investors in Careem include Rakuten, Daimler, DCM Ventures and Coatue Management.

Photo: Zizolo0ol/Wikimedia Commons